Uber stock just pulled back to a historically bullish trendline
Shares of ride-sharing firm Uber Technologies Inc (NYSE:UBER) are marginally lower today, last seen trading up 0.2% at $43.93, as they continue to pull away from their July 31, two-year high of $49.49. While August has so far yielded an 11.1% dip for Uber stock, this recent pullback has it trading near a historically bullish trendline that could help it recapture its 2023 highs.
Specifically, UBER is trading within one standard-deviation of its 80-day moving average. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, this signal flashed four other times over the last three years. One month later, Uber stock averaged a 14.6% pop in 75% of the occurrences. A similar move from its current perch would put Uber stock above $50 per share.
An unwinding of pessimism in the options pits could gift UBER an additional lift. This is because short-term options traders are more bearish than usual, per the equity's Schaeffer's put/call open interest ratio (SOIR) that sits in the 80th percentile of annual readings.
Options traders are pricing in relatively low volatility expectations, as evidenced by Uber stock's Schaeffer's volatility index (SVI) of 34%, which ranks higher than just 7% of readings from the past 12 months. In other words, options premiums are low right now.